Fundamentals across all commercial real estate sectors continue to improve from their low points during the recession. According to a report from the National Association of Realtors, ongoing job creation, which is at a higher level this year, is fueling an underlying demand for commercial real estate space, assisted by a steady increase in consumer spending. Vacancy rates are gradually declining across all sectors paired with generally modest rent growth.
Experts expect the economy to add around 2.5 million jobs both this year and in 2013, which is good news for all facets of commercial real estate. However, there still remains a large problem with properties priced under $2.5 million as little capital is available for small business, which is impacting transactions. There are several less restrictions to lending for larger properties.
To read the full article from RISMedia, including a rundown on the individual sectors, click here.